Assets of federally insured credit unions rose 4.61%, increasing from $678.7 billion to $709.9 billion over the last year.

Loans increased 7.88% to $494.3 billion from $458.2 billion during 2006 and the yield on loan income expanded to 15.45%, according to NCUA's analysis of year-end 5300 Call Report data. Delinquent loans also continued to decline and net charge-offs dropped 11 basis points.

First mortgages grew 10.04% and other real estate loans were up 15.03% as well. Similar to Federal Reserve findings, credit union real estate loan originations dropped 5.23% over the year, while delinquent mortgages over two months increased 41.31% to $825.6 million and first mortgage real estate loan charge-offs expanded 34.01%.

New auto loans overtook used in the auto lending category for the first time since 2000 with new loans up 5.44% to $88.5 billion and used growing 1.11% to $87.6 billion. The number of regular and credit cards loans charged-off declined while the amount of recoveries increased.

Even though investments declined 9.14%, more favorable market conditions permitted investment income to grow 18.84%.

"In addition to continued increased lending, credit unions reported an average return on assets of 0.82% and a net worth ratio of 11.54% at year-end 2006," NCUA Chairman JoAnn Johnson said. "Year after year of strong financial results indicate credit unions are prudently managed and well-run stewards of their members' money, and in doing so fulfill their mission to enable consumers to save and invest in a cooperative environment." ROA ended 2005 at 0.85%.

Additionally, shares increased 4.08% to $601.2 billion from $577.6 billion. For the first time ever, share certificates grew 23.81% to $189.0 billion surpassing regular shares to become the largest share category. Money market shares were up 1.44% to $100.4 billion, and IRA/KEOGH accounts grew 7.66% to $52.0 billion. Regular shares declined 6.76% to $181.0 billion and share drafts declined 6.75% to $70.4 billion.

Last year's figures also showed net worth increased 7.42% from $76.3 billion to $82.0 billion and membership was up 1.48% to 85.8 million members of federally insured credit unions.